Your Most Honourable Chief Reckoner Dan Denning mentioned the possibility of a post-Olympics slump in China’s economy recently. Something similar to Sydney. A slow-down in the economy as all the tourists and competitors head home, taking their spending money with them. Best of luck to any athletes travelling Qantas. The swimmers should be fine.
August 26th, 2008 | Al Robinson | 1 comment | ContinuedAustralasia
Commentary on Australian and Asian economics, politics and society by your Daily Reckoning editors in Melbourne, Australia. Still haven’t subscribed to the Daily Reckoning? What are you waiting for… sign up here, it’s free!
A chronological listing of articles is below.
Wayne Swan Approves Chinalco Investment in Rio Tinto (ASX: RIO)
Australian Treasurer Wayne Swan announced this weekend that Chinalco is more than welcome to 11% of Rio Tinto (ASX:RIO). He made it sound like there were some caveats, provisos, and addendums. But at the end of the day the Treasurer said, “I have decided to raise no objections under Australia’s foreign investment policy.” Okay. There are just two conditions that apply, though.
August 25th, 2008 | Dan Denning | 2 comments | Continued
Wesfarmers (ASX:WES) Increases Revenues But Not Earnings With Coles
What a difference a day makes. Or does it? Commodities are on the verge of their biggest one-week really in 33 years, according to Bloomberg. Gold was up US$25 overnight (2.7%). Oil rallied five bucks. The Reuters/Jeffries CRB Index tacked on 3.7% yesterday alone. If it can keep itself together Friday, the index will be looking at a one week gain of 6.7%. So is this the second coming of the commodity bull market?
August 22nd, 2008 | Dan Denning | 0 comments | Continued
Difference Between the Dollar and the Yen
There are big differences between the United States and Japan…between the dollar and the yen…and between today’s globalized economy of 2008 and Japan, Inc.
August 21st, 2008 | Bill Bonner | 1 comment | Continued
CNOOC Signs Agreement With Altona (LON: ANR) for Coal to Liquids Project
Altona Resources Plc (LON: ANR), listed on London’s small cap market, has signed what it calls an ‘in-principle agreement’ with CNOOC Energy Investment Co Ltd to cooperate in the development of a project Altona has in the Ackaringa Basin of SA. It’s an ambitious project too. The project includes a 10 million barrel per year (30kbpd) open cut mine and a 560 megawatt power plant.
August 20th, 2008 | Dan Denning | 0 comments | Continued
Optus Blocking e-Mail from the Daily Reckoning Australia
If you signed up to receive the Daily Reckoning Australia via e-mail and are optusnet.com.au, optushome.com.au or optusnet.com, please note that we have been unable to deliver your messages to you because your internet service provider has been rejecting our email since May of 2008.
August 20th, 2008 | The Daily Reckoning | 7 comments | Continued
The Australian Resource Boom Isn’t Dead Yet
The liquidation of the short-dollar/long-commodity trade raises a simple question: what’s going to lead the market when it turns up next? Typically, the sector that led the last bull market hardly ever leads the next one. There are lots of reasons for this. But the simple one is that conditions for expanding earnings are never as good as they are when things are as good as they’ve ever been (as they tend to be at the height of a boom.) Financials have been pounded harder than resources.
August 19th, 2008 | Dan Denning | 1 comment | Continued
BHP Billiton (ASX: BHP) to Report Second Half Results Today
Melbourne-based resource giant BHP Billiton (ASX: BHP) is scheduled to report its second half results today. Analysts expect the company to report a 30% gain in second half profit to $9.4 billion. That profit growth was driven mainly by higher prices in the petroleum division and production increases in iron ore. Yet the stock is down 4%, year to date. And commodities are coming off a horrible month.
August 18th, 2008 | Dan Denning | 0 comments | Continued
RBA Declares ‘Victory’ Over Inflation in Australia
Let’s get right to the point and suggest that Reserve Bank of Australia deputy governor Rick Battelino was talking to the banks yesterday and not anyone who lives on planet Earth, or Terra Australis Incognito, where last we heard, inflation was running at 4.5% on a yearly basis. The RBA was pretty clear in its Statement of Monetary policy that it would like to cut rates. The Aussie dollar fell in response. So why bother making the point as directly as he did yesterday?
August 15th, 2008 | Dan Denning | 2 comments | Continued
Debt Backed Securities Face Deepening Trouble
Securities backed by credit cards, auto loans, and even what mortgage brokers thought were good credit risks in the housing market are all facing trouble ahead. De-leveraging-the selling of assets bought with credit-is taking place at the corporate and household level, even if it’s not always willingly. Necessity is the mother of liquidation. The New York Times reports that, “Bond investors first stopped buying private home mortgage deals, then shunned commercial mortgages.
August 14th, 2008 | Dan Denning | 9 comments | Continued